MIRA INFORM REPORT

Report Date :

04.04.2012

IDENTIFICATION DETAILS

Name :	PARAG MILK FOODS PRIVATE LIMITED
Formerly Known As :	PARAG MILK AND MILK PRODUCTS PRIVATE LIMITED
Registered Office :	Flat No.1, Plot No.19, Nav Rajasthan Society, Behind Ratna Memorial Hospital, S.B. Road, Shivaji Nagar, Pune – 411 016, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.12.1992
Com. Reg. No.:	11-070209
Capital Investment / Paid-up Capital :	Rs.158.103 Millions
CIN No.: [Company Identification No.]	U15204MH1992PTC070209
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Milk Products such as Ghee, Butter, Cheese and Milk Powder.
No. of Employees :	850 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 2485108
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INFORMATION PARTED BY

Name :	Mr. Ajit
Designation :	Accountant
Contact No.:	91-9890700668
Date :	03.04.2012

LOCATIONS

Registered Office :	Flat No.1, Plot No.19, Nav Rajasthan Society, Behind Ratna Memorial Hospital, S.B. Road, Shivaji Nagar, Pune – 411 016, Maharashtra, India
Tel. No.:	91-20-25674762/ 25674761
Mobile No.:	91-9890700668 (Mr. Ajit Marathe)
Fax No.:	91-20-25674763/ 25674761
E-Mail :	cs@gowardhaindia.com marathe@gowardhaindia.com
Website :	http://www.gowardhaindia.com
Area :	2000 sq. ft.
Location :	Owned
Corporate Office/ Factory 1 :	Awasari Phata, Manchar, District Pune – 410 503, Maharashtra, India
Tel. No.:	91-21-33224763
E-Mail :	parag@gowardhaindia.com
Location :	Owned
Factory 2 :	Village Samudrapalle, and Panchayat Palmner Handal, Andhra Pradesh, India
Location :	Owned
Marketing Office:	8^th Floor, 81-A Wing, Mittal Court, Nariman Point, Mumbai – 400 021, Maharashtra, India
Tel. No.:	91-22-22844763 / 43005555 / 43005553
Eastern Regional Office:	P-12, Kalindi Housing Estate, Ground Floor, Kolkata – 700 089, West Bengal, India
Tel. No.:	91-33-25223090/ 25223092
E-Mail :	gowardhan@cal3.vsnl.net.in

DIRECTORS

AS ON 28.12.2011

Name :	Mr. Devendra Prakash Shah
Designation :	Chairman
Address :	A-602, Kumar Puram Mukund Nagar, Pune – 411 037, Maharashtra, India
Date of Birth/Age :	27.04.1964
Qualification :	B.Com
Experience :	16 Years
Date of Appointment :	29.12.1992
Name :	Mr. Pritam Prakash Shah
Designation :	Managing Director
Address :	A-602, Kumar Puram Mukund Nagar, Pune – 411 037, Maharashtra, India
Date of Birth/Age :	01.11.1970
Qualification :	B.Com
Experience :	16 Years
Date of Appointment :	06.02.2009
Name :	Mr. Parag Prakash Shah
Designation :	Director
Address :	A-602, Kumar Puram Mukund Nagar, Pune – 411 037, Maharashtra, India
Date of Birth/Age :	22.06.1967
Date of Appointment :	29.12.1992
Name :	Mr. Dhaval Sumantrai Desai
Designation :	Director
Address :	405, Gayatri Opposite Pratap Society, J.P. Road, Andheri (West), Mumbai – 400 053, Maharashtra, India
Date of Birth/Age :	14.09.1956
Qualification :	Graduate
Date of Appointment :	15.01.2008
Name :	Mr. Sunil Badriprasad Goyal
Designation :	Director
Address :	731/ A, 7^th Floor, Akshay Girikunj – III, Paliram Road, Andheri (West), Mumbai – 400 058, Maharashtra, India
Date of Birth/Age :	04.10.1967
Date of Appointment :	15.01.2008
Name :	Mr. Rakesh Ram Gopal Sony
Designation :	Director
Address :	Lotus Court, Flat No.10, JT Road, Chruchgate, Mumbai - 400 020, Maharashtra, India
Date of Birth/Age :	02.01.1976
Date of Appointment :	06.02.2009
Name :	Mr. B M Vyas
Designation :	Director
Date of Appointment :	22.07.2010

KEY EXECUTIVES

Name :	Mr. Dharmendra Vyas
Designation :	Secretary
Date of Birth/Age :	20.11.1983
Date of Appointment :	13.11.2011
Name :	Asawari Avinash Tilak
Designation :	Secretary
Address :	A-9, Ganga Lahari Society, Ganeshnagar, Pune – 411 052, Maharashtra, India
Date of Birth/Age :	01.03.1985
Date of Appointment :	11.12.2008
PAN No.:	AFSPT4547E
Name :	Mr. Ajit Marathe
Designation :	Accountant
Name :	Mr. Romesh C. Mahajan
Designation :	Vice President (Project)
Date of Birth/Age :	64 Years 6 Months
Experience :	42 Years
Date of Appointment :	14.07.2008
Name :	H.S. Oberoi
Designation :	President
Date of Birth/Age :	67 Years 5 Months
Experience :	45 Years
Date of Appointment :	01.06.2009

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2010

Names of Shareholders	No. of Shares
Parag Prakash Shah	1631096
Pritam Prakash Shah	3053296
Devendra Prakash Shah	4856944
Prakash Babulal Shah	2239112
Priti Devendra Shah	496940
Rajni Prakash Shah	192004
Netra Pritam Shah	1177480
Purva Constructions and Engineering Private Limited, India	1000000
India Business Excel Lence Fund I, Mauritius	40
IL and FS Trust Company Limited, India	40
Suneeta agarwal	40
Vimla Oswal	40
Pratik Oswal	40
Anmol Insurance Consultants Private Limited, India	40000
IRIS Business Solutions Private Limited, India	900000
Ladderup Finance Limited, India	200000
Richa Gupta	3200
Chetan Narayan Pasari	6000
Meet Narayan Pasari	4000
Parvatidevi Pasari	4000
Narayan Ramgopal Pasari	4000
Kanhaiyalal Kabra	2000
Total	15810272

AS ON 28.12.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	13.54
Directors or relatives of directors	86.32
Other top fifty shareholders	0.14
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Milk Products such as Ghee, Butter, Cheese and Milk Powder.
Products :	v Ghee v Butter v Cheese v Cream v Gulab Jamun Mix v Milk Powders v Curd v Butter Milk v Butter Oil v Dairy Whitener v Milk
Brand Names :	GOWARDHAN
Exports :
Products :	v Ghee v Butter v Cheese v Cream v Gulab Jamun Mix v Milk Powders v Curd v Butter Milk v Butter Oil v Dairy Whitener v Milk
Countries :	v US v UAE v Singapore v Saudi Arabia v Bangladesh v Hong Kong v Oman
Imports :
Products :	Machinery
Countries :	v Germany v Switzerland
Terms :
Selling :	L/C, Credit (30 days) and Advance
Purchasing :	L/C, Cash and Credit (30 days)

PRODUCTION STATUS (AS ON 31.03.2011)

Installed Capacities:

Particulars	As at March 31, 2011*
Pasteurized Milk	1700000 LPD
Condensed Milk	105 TPD
Cream/ Ghee/ Cheese	65 TPD
SMP/ Dairy Whitener/ Gulab Jamun Mix/ Real Milk Powder	65 TPD

* As certified by the management and accepted by the auditors.

LPD: Litre per day

TPD: Tonne per day

Particulars	Production/ Purchase 2010-11 Tonnes
Ghee	4568.52
Butter	2439.60
Cheese	3140.07
Cream	198.42
Gulab Jamun Mix	172.49
Skim Milk Powder	9829.63
Whole Milk Powder	193.94
Dahi	2201.55
Chass	4.62
Butter Oil	698.40
Dairy Whitener	557.50
Butter Milk Powder	858.70
Milk	*

* Milk is sold in both Tonnes and Litres. (43.860 Millions Litres and 7,867.68 Tonnes (Previous year (39.099 Millions Litres and 10,037.53 Tonnes))

** This does not include income earned from processing on behalf of other parties.

GENERAL INFORMATION

Suppliers :

v Tetra Pak India Limited

v Gea Ecoflex India Private Limited

Customers :

Retailers

v Mother Dairy, Delhi

v Dominos

v Pizza Hut

No. of Employees :

850 (Approximately)

Bankers :

• Export - Import Bank of India, Centre One Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai – 400 005, Maharashtra, India
• Bank of Maharashtra, Manchar Branch
• Union Bank of India, Industrial Finance Branch, 619, Sachapir Street, Pune – 411 001, Maharashtra, India
• Union Bank of India, Pune Camp Branch, Aurora Towers, M.G. Road, Pune – 411 001, Maharashtra, India
• State Bank of India, Industrial Finance Branch, Pune – 411 003, Maharashtra, India
• Standard Chartered Bank, Mumbai, Maharashtra, India
• IDBI Bank, Pune, Maharashtra, India

Facilities :

Total Facility – Rs.1750.000 millions (Export - Import Bank of India)

Total Facility (Cash Credit) – Rs.1750.000 millions (Union Bank of India)

Secured Loans	31.03.2011 (Rs. In millions)	31.03.2010 (Rs. In millions)
Term Loans from Banks	847.078	934.176
Working Capital Loans from Banks	1272.163	781.229
Vehicle Loans	4.421	4.832
Total	2123.662	1720.237

Unsecured Loans	31.03.2011 (Rs. In millions)	31.03.2010 (Rs. In millions)
Fully Convertible Debentures	550.000	550.000
Term Loans from Bank	200.000	0.000
Term Loans from Others	59.295	0.886
Total	809.295	550.886

Banking Relations :	--
Auditors :
Name 1 :	SPCM and Associates Chartered Accountants
Address :	1211/B, Shukarwar Peth, Subhas Nagar, Lane No.4, Pune – 411 002, Maharashtra, India
Tel. No.:	91-20-24479119
Fax No.:	91-20-24486663
E-Mail :	accounts@spcm.co.in
Income-tax PAN of auditor or auditor's firm :	AABFB8864C
Name 2 :	Walker, Chandiok and Company Chartered Accountants
Address :	Engineering Centre, 6^th Floor, 9, Mathew Road, Opera House, Mumbai – 400 004, Maharashtra, India
Tel. No.:	91-22-66262600
Fax No.:	91-22-23671624
E-Mail :	MUMBAI@wcgt.in
Name 3 :	Haribhakti and Company Chartered Accountants
Subsidiaries :	Bhagyalaxmi Dairy Farms Private Limited CIN No.: U01211PN2003PTC018624

CAPITAL STRUCTURE

AS ON 28.12.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15810272	Equity Shares	Rs.10/- each	Rs.158.103 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		158.103	158.103	158.103
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		463.174	432.350	349.578
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		621.277	590.453	507.681
LOAN FUNDS
1] Secured Loans		2123.662	1720.237	1385.460
2] Unsecured Loans		809.295	550.886	501.003
TOTAL BORROWING		2932.957	2271.123	1886.463
DEFERRED TAX LIABILITIES		92.614	56.458	19.301
TOTAL		3646.848	2918.034	2413.445
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1718.284	1438.313	420.286
Capital work-in-progress including capital Advances		410.390	346.423	945.887
INVESTMENT		177.698	177.698	128.578
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1130.229	732.268	661.862
	Sundry Debtors	823.363	551.974	375.348
	Cash & Bank Balances	25.249	71.412	179.142
	Other Current Assets	0.000	0.000	0.415
	Loans & Advances	206.709	161.027	118.933
Total Current Assets		2185.550	1516.681	1335.700
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	630.572	410.619	363.696
	Other Current Liabilities	117.180	87.956	13.390
	Provisions	97.322	62.506	39.920
Total Current Liabilities		845.074	561.081	417.006
Net Current Assets		1340.476	955.600	918.694
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3646.848	2918.034	2413.445

PROFIT & LOSS ACCOUNT

Expected Sales (2011-2012): Rs.10400.000 millions

The above information has been parted by Mr. Ajit (Accountant).

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales and Services	6284.800	4920.200	3400.600
		Other Income
		TOTAL (A)	6284.800	4920.200	3400.600
Less	EXPENSES
		Office Expenses	5791.800	4556.600	3134.600
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	5791.800	4556.600	3134.600
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		493.000	363.600	266.000
Less	INTEREST (D)		201.700	121.500	84.200
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		291.300	242.100	181.800
Less/ Add	DEPRECIATION/ AMORTISATION (F)		172.000	115.200	58.000
	PROFIT BEFORE TAX (E-F) (G)		119.300	126.900	123.800
Less	TAX (H)		88.400	44.200	40.000
	PROFIT AFTER TAX (G-H) (I)		30.900	82.700	83.800
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		357.100	274.300	190.500
Less	APPROPRIATIONS
		Transfer to General Reserve	4.100	0.000	0.000
	BALANCE CARRIED TO THE B/S		383.900	357.100	274.300
	EARNINGS IN FOREIGN CURRENCY
		Export of goods on F.O.B. Basis	329.644	44.536	799.681
	IMPORTS
		Capital Goods (including Capital Work in progress)	34.314	32.943	327.920
		Stores and Consumables	25.312	16.753	6.976
	TOTAL IMPORTS		59.626	49.696	334.896
	Earnings Per Share (Rs.)		1.95	1.34	2.12

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.49	1.68	2.46
Return on Total Assets (PBT/Total Assets}	(%)	3.05	4.29	7.05
Return on Investment (ROI) (PBT/Networth)		0.19	0.21	0.24
Debt Equity Ratio (Total Liability/Networth)		6.23	4.80	4.54
Current Ratio (Current Asset/Current Liability)		2.58	2.70	3.20

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Sundry Creditors	630.572	410.619	363.696
Total	630.572	410.619	363.696

NOTE:

The registered office of the company has been shifted from 602, Kumar Purammukund Nagar, Pune – 411 037, Maharashtra to the present address w.e.f. 06.02.2009.

BUSINESS BACKGROUND

Subject was incorporated on December 20, 1992. The Company procures milk from Village Level Collection Centers (VLCC’s) and Chilling Centers located in various regions in western and southern India. The milk from the VLCC’s and Chilling Centers is transported to its factory premise at Manchar where the milk is processed and various products are manufactured namely cheese, butter, ghee, fresh cream, milk powder etc. are marketed under Its registered brand name “Gowardhan”. The products manufactured by the Company are prepared purely from cows’ milk. The Company as both a national and an international player.

COMPANY PERFORMANCE

The Company has marked a total income of Rs. 6284.800 millions for the Financial Year 2010-2011 as against Rs. 4920.200 millions during the Financial Year 2009-2010, an increase by ~27.73 % during the year. In an increasingly competitive environment where the profit and profitability are greatly impacted by commodity inflation, the Profit before tax (PBT) for the year is Rs. 119.200 millions as against Rs.126.900 millions during the previous Financial Year. The lower profitability for the current year is due to gestation period of Palamner plant commencement, wherein it started full-fledged operations during the current year only. During the year the Company has made exceptional provision for tax an amounting of Rs. 43.183 millions to avoid protracted litigation with the Income Tax Department. Without exceptional provision for tax, the profit after tax (PAT) would have been Rs. 74.831 millions. Earnings per share of the Company for the Financial Year 2010-2011 is 1.95 per share.

REVIEW OF OPERATION:

In 2010-2011 the unprecedented inflationary pressures on the consumer food basket continued, as did commodity inflation for the food industry. This resulted in higher cost of feed and fodder, impacting cost of milk production. Coupled with this, due to higher demand of feed in global market, they also witnessed large-scale export of necessary crude proteins in form of de-oiled cakes. Since the Company procure milk from dairy farmers, in order to compensate them for increased cost of production.

Against this adverse scenario and continued competitiveness that eroded the overall industry profit pool, the Company continued to focus on its growth strategy, led by its Brands and at the same time increased its productivity and restructured operations to reduce operational costs. The Company focus on building new capabilities and a robust pipeline of innovation resulted in several new launches during FY 2010 - 2011.

The Company addressed the cost challenge by significantly reducing cost through consolidating operations, reducing complexity and eliminating wastages in the value chain. The Company will continue and intensify the thrust on cost effectiveness in the coming year as well.

Dairy Business: The dairy Industry plays a vital role in the development of Agriculture sector. Milk is the only agro-based commodity that offers immediate marketability and consistent revenue to the farmers. Considering the demand for milk and milk products, there is still a lot of scope for increasing the milk production in India by adopting scientific methods of breeding and nutrition.

The Company is well aware of the industrial scenario and being alert focuses mainly on long term goals, steady and profitable development. Its strong brand coupled with the varied products portfolio enables it to meet adverse conditions confidently and overcome it. During the year, for expansion of business and to increase of existing capacity and capability of production in South region the Company has invested over Rs. 450 millions in plant and machinery for Palamner plant and already started full fledged operation from the Palamner plant.

The Company is planning to enhance the portfolio of the existing brands by bringing in more product categories and sub-categories under GO brand mainly in Cheese products in next financial year. Also, the Company is planning to establish its own chilling centers to procure milk at village level for that the Company has already established its own chilling center at Manchar and Palamner.

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last two years	Yes
12) Profitability for last three years	No
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

FORM 8:

Corporate identity number of the company	U15204MH1992PTC070209
Name of the company	PARAG MILK FOODS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Flat No.1, Plot No.19, Nav Rajasthan Society, Behind Ratna Memorial Hospital, S.B. Road, Shivaji Nagar, Pune – 411 016, Maharashtra, India
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	Export - Import Bank of India, Centre One Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai – 400 005, Maharashtra, India Email: eximpro@eximbankindia.in
Nature of instrument creating charge	Deed of Hypothecation of Moveable Fixed Assets dated 20.03.2011, executed by Parag Milk Foods Private Limited (the "Borrower") in favour of Export Import Bank of India (Exim Bank) for its working capital Term Loan facility of Rs. 100 millions
Date of instrument Creating the charge	20.03.2012
Amount secured by the charge	Rs. 100.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest The facility shall carry a rate of interest @ 12% p.a., payable with monthly rests Terms of repayment Unless the Borrower shall prepay the loan, the Loan shall be repaid by the Company in a bullet at the end of six months from the date of each disbursement. Margin Nil Extent and operation of the charge The charge created under the aforesaid Deed of Hypothecation in favour of Exim Bank shall operate as a continuing security by way of pari passu first charge over the Borrower's entire movable fixed assets both present and future, for the due repayment of the loan together with interest and, all other monies payable by the Borrower to Exim Bank under the Rupee Loan Agreement.
Short particulars of the property charged (Including location of the property)	Borrower's moveables fixed assets, both present and future, briefly described in Schedule III of the Deed of Hypothecation of Movable Fixed Assets dated March 20, 2012.

FIXED ASSETS

Tangible Assets:

v Freehold Land

v Buildings

v Plant and Machinery

v Office Equipments

v Computers

v Furniture and Fittings

v Leasehold Building Improvements

v Vehicles

Intangible Assets:

v Trade Marks

v Computer Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.50.56
UK Pound	1	Rs.81.05
Euro	1	Rs.67.48

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.